The Background:
VMM environment was updated from 2012 R2 to Update Rollup 1, followed by Update Rollup 2. Bare-Metal deployments have been working successfully and no agent communication issues have occurred until now. The VMM server is on a separate instance from the SQL server. The report.txt file indicates that there is a problem communicating with the SQL server however VMM starts fine and the VMM service starts fine as well (normally not the case when there are SQL problems).
The Issue:
When the client deploys a new host it comes up with following error message after installing the VMM agent (Report attached):
"Error 20413 - VMM encountered a critical exception and created an exception report"
------------------- Error Report -------------------
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Error report created 20/06/2014 1:53:10 p.m.
CLR is not terminating
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--------------- Bucketing Parameters ---------------
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EventType=VMM20
P1(appName)=vmmservice.exe
P2(appVersion)=3.2.7634.0
P3(assemblyName)=Microsoft.UpdateServices.AdminDataAccessProxy.dll
P4(assemblyVer)=6.3.9600.16384
P5(methodName)=Microsoft.UpdateServices.Internal.DatabaseAccess.AdminDataAccessProxy.ExecuteSPGetConfiguration
P6(exceptionType)=System.Data.SqlClient.SqlException
P7(callstackHash)=4e8
SCVMM Version=3.2.7634.0
SCVMM flavor=C-buddy-RTL-AMD64
Default Assembly Version=3.2.7634.0
Executable Name=vmmservice.exe
Executable Version=3.2.7510.0
Base Exception Target Site=140706924135576
Base Exception Assembly name=Microsoft.UpdateServices.BaseApi.dll
Base Exception Method Name=Microsoft.UpdateServices.Internal.BaseApi.SoapExceptionProcessor.DeserializeAndThrow
Exception Message=A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections. (provider: Named Pipes Provider, error: 40 - Could not open a connection to SQL Server)
EIP=0x00007ff9008bab78
Build bit-size=64
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Upon inspecting the host after failed deployment the host status indicates that
"Agent communication is blocked. The version of the virtualization software of the VMM agent is unsupported. Update the agent and virtualization software, and then try the operation again"
ID 441
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MCSE: Private Cloud, Virtualization enthusiast.